Credit Management for Research Receivables Policy

Application

All staff members at the University who are involved in raising invoices and credit notes, and the management of debtor accounts (except student debts which are managed by student administration).

Purpose

To provide a framework for accounts receivable and credit management for research receivables within the University.

Background

The key areas covered by this policy are the raising of invoices, credit notes, the payment of accounts, and collection of overdue accounts.

Policy

1. Payment for goods and services must be received before goods / services can be delivered unless credit terms have been granted.

2. Payment on credit terms is only allowed where payment cannot be obtained in advance and the debtor's credit credentials have been adequately established.

Note - In most cases this will be by credit reference checking

3. Debtors must agree to this policy before they can be approved to trade with the University on credit terms

4. In line with normal commercial practice, debtors are to be requested to provide a purchase order when purchasing goods and/or services from the University

5. Further credit will not normally be given to a debtor whose account is overdue

Note - All decisions to grant credit for goods and services must be authorised in accordance with the Financial Delegations Policy.

6. Credit notes can only be given in limited circumstances.

Note - They must be authorised in accordance with the Financial Delegations Policy.

7. The collection of overdue research accounts will be performed by the Research Operations Centre

Note - The mandatory procedures that also form part of this policy appear in the related document Credit Management Procedures.

Definitions

The following definitions apply to this document:

Credit means deferred payment by a customer for the goods/services provided by the University.

Debtor is a party who owes money to the University.

Staff member refers to an individual employed on a full or part time basis by the University.

University means the University of Auckland and includes all subsidiaries.

Key relevant documents

Include the following:

Document management and control

Owner: Deputy Vice-Chancellor (Operations) 
Content manager: Chief Financial Officer 
Approved by: Vice-Chancellor
Date approved: 23 March 2018
Review date: 23 March 2023